Large Cap Growth seeks long-term capital appreciation and invests primarily in the common stocks of U.S. companies with large market capitalizations. Large Cap Growth is a dual-concentrated strategy, investing in a limited number of preferred sectors and typically holds 25 or fewer stocks. Investments are made with a long-term focus, generally involving a 3-5 year time horizon but often longer. The investment team aims to keep portfolio turnover low.
Our approach
Oak’s investment team manages this portfolio collaboratively with a top-down and bottom-up investment approach.
The investment process begins with a top-down approach, analyzing key factors and identifying long-term trends. The managers then determine the sectors and industries with the best potential for long-term growth. Stock selection is based on both qualitative and quantitative factors, with the managers favoring companies which possess above-average growth potential at attractive prices.
Top-down
Our top-down analysis comprises about 60% of the process and includes consideration of inflation, wage pressures, leading economic indicators, and global short-term rates. Our macroeconomic analysis leads us to the most attractive sectors. We evaluate sectors by considering relative valuation, stage in the economic cycle, and capacity within the sector. Other inputs to the top-down analysis include market sentiment indicators such as investor surveys, valuation spreads, stock correlations, and fund flows.
Bottom-up
The bottom-up process then applies empirically based qualitative and quantitative criteria to identify the buy candidate. A typical Oak holding has an attractive valuation, high free cash flow yield, high earnings quality, and a sustainable competitive advantage.
The Large Cap Growth strategy is also available as a mutual fund, White Oak Select Growth (WOGSX).
Email the Relationship Management Team or call 330-668-1234